School reports half-year profit
ENGLISH language school for international students Free Bird Institute Ltd (FBL) has reported a net profit before taxes of $360,980 for the six months period ended June 30, 2024.
The publicly-listed company recorded $422,299 net profit before taxes for the same period last year.
In his report, FBL chief financial officer Roqiqi Korodrau said their total income for the six months period this year was $2,013,633, and it reflected a 4 per cent decline from $2,099,203 earned in the same period last year.
He attributed the decrease to a 7 per cent reduction in service fees, which is directly linked to a 4 per cent drop in their student numbers.
“In response to this revenue shortfall, our management team has been proactive in implementing cost-saving measures. We have successfully reduced personal expenses by 7 per cent and direct operating expenses by 9 per cent, leading to an overall expense reduction of 9 per cent,” Mr Korodrau said.
“These efforts underscore our commitment to maintaining financial prudence while navigating a challenging economic landscape.”
Despite the revenue decline, he said their disciplined approach to expense management has resulted in a 14 per cent increase in operating profit, reaching $533,856.
“However, we continue to face significant challenges due to foreign exchange losses. The Japanese yen, now at its lowest point since the early 1990s, has increased the cost of international travel, thereby reducing the number of students studying abroad and exacerbating foreign exchange losses for those who do.
“Consequently, our net finance cost has risen by $177,876.”
Mr Korodrau said net assets were at $6.7m, reflecting a 6 per cent increase compared to December last year; and total assets reached $8.7m — a 3 per cent increase from the same period last year. Net assets have also grown by 6 per cent compared to last year.
“This growth reflects our strategic financial management and commitment to enhancing our overall financial stability.”